Question 3 50 Marks Essendon Ltd commences operations on 1 July 2020. One year after the commencement of its operations (30 June 2021) the entity presents its first Statement of Comprehensive Income and Statement of Financial Position on 30 June 2021. The statements are prepared before considering taxation. The following information is available. Essendon Ltd Statement of Comprehensive Income for the year ended 30 June 2021 $ $ Gross Profit 2,500,000 Expenses: Administrative expenses 294,000 Salaries 414,000 Provision for doubtful debts 70,000 Long service leave 140,000 Warranty expenses 85,000 Depreciation expense on equipment 224,000 Insurance 90,000 1,317,000 Accounting profit for the year 1,183,000 Essendon Ltd Assets and Liabilities as disclosed in the Statement of Financial Position for the year ended 30 June 2021 $ $ Assets Cash at bank 74,000 Inventory 280,000 Receivables (net) 210,000 Prepaid insurance 20,000 Equipment - cost 1,120,000 Less accumulated depreciation-equipment 224,000 896,000